Last month I talked to an entrepreneur who’s company was hitting on all cylinders and growing fast. I asked him about his product and how he started the business. He quickly recounted how this was actually their second product as the first product did well but that they expanded into this newer product once he saw a growth plateau on the horizon. Now, growth isn’t the most important thing to all entrepreneurs but many view growth as new challenges and adventures that make the journey fun.
Here are a few questions to think through when there’s a growth plateau on the horizon:
- How important is growth relative to profitability and stability?
- Does growth mean 5% a year or 50% a year to me?
- Is it time to expand geographic markets, new industry verticals, or a new product completely?
- What risks and opportunities come with these changes?
My recommendation is to consider expanding when a growth plateau is on the horizon.
What else? What other considerations should be taken into account with a growth plateau?